Whitney Young High School 12 th Grade Age: 17

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3 Whitney Young High School 12 th Grade Age: 17 3

4 Business Profile Personal fashion design company custom made clothing for men, women and children. My business is designing, manufacturing and marketing of custom clothing. My business is consumer focused and passionate about giving back to the community and being environmentally friendly. Legal Structure My business is a sole proprietorship I will explore converting to a limited liability structure before hiring employees or assuming significant legal obligations. I have already made over 350 items and have many loyal customers. 4

5 Product & Service Description Personal style consultations to help determine flattering shapes, colors and textures. Each garment is totally unique and will never be remade. Qualifications Sewing and running this business for 3 years Produced full collections in both 2008 (6 piece) and 2009 (16 piece) Worked with Chicago designers Nicole Valeri and Tennille White Silver medalist in the 2008 All-City Art Competition Advanced Apprentice in the Gallery 37 Fashion Design program 5

6 Market Analysis: Location: Within a 10 mile radius of the Loop area Population: 2,833,321 (2006 census) Household Income: above $50,000 per year Behavior: Ladies who want a unique garment for special occasions. They look at fashion magazines (such as Vogue) and watch celebrity events for ideas. A lot of emphasis is put on creating their personal style. 6

7 Consumer Profile Market Segment: Women and Men ages 16 to 45 Target Customer: A person who cares about their appearance and needs garments that are beautiful and one of a kind. They have the ability to spend a moderate amount of money on clothing. They live in the Chicago area and doesn t ever want to encounter someone wearing the same garment. 7 7

8 Competition Competitor Price Location Quality Caché $ Fair Macy s $ Fair Peaches $ Fair Competitive Advantage Each garment is completely unique and personally designed. Easy access to custom made clothing. All fabrics made in the U.S. free from child labor, abusive working conditions, etc. I can use environmentally friendly materials like renewable bamboo fabrics. 8

9 Marketing Mix Price: I chose $300 as my price because this covers my COGS and allows me to make a profit while still being affordable. Place: I chose the Chicago area because I live there and it is where my business is based. There isn t another option for custom made, unique garments that is readily available in my community. In the future, I would like to expand into other urban markets. Product: Custom made clothing, designed to fit the customer s style and personality. Promotion: I attract new customers with special package deals and through word of mouth. 9

10 10 Marketing Plan Method Description Target Consumer Cost Discounts for customer referrals Customers will receive a discount if they refer a friend New customers 10% of purchase price Special Packages For example, purchase wedding party dresses (wedding dress, bridesmaids, etc) and receive one free flower girl dress Women who are getting married or people who would be buying more than 1 garment Cost of flower girl dress approx. $50 Upgrade/ Trade In Program After a garment is worn, customers can bring in gently used Zoë Damacela garments for resale and receive special discounts for their next purchase. People who either change their style frequently or who buy special occasion garments that are worn only once 25% of purchase price

11 Cost of Materials/Direct Labor Direct labor (wage per hour) Definition of One Unit: Time (in hours) to make one unit Direct labor cost per unit ($) $20 5 $100 TOTAL $100 Material Description Cost /Quantity Cost per Unit ($) Crepe Back Satin/ Fabric $5 per yard/ 3 yards $15 Lining $2 per yard/ 2 yards $4 Zipper $17 for 50 $0.34 Thread $1/ 1 spool $1 TOTAL $20.34 TOTAL MATERIALS/DIRECT LABOR $

12 Economics of One Unit Definition of One Unit One Unique Dress Selling Price per Unit $300 Direct Labor 5 hours at $20/hr $100 Materials Fabric plus notions $20.34 Total COGS Per Unit $ Other Variable Costs $.20 Hangers, Garment Bags Total Variable Costs $ Gross Profit Per Unit $

13 Time Management Plan Business schedule for a typical week Entrepreneurship Hours: 36 School Hours: 40 Work Hours: 0 Free-Time Hours: 92 13

14 Average Monthly Fixed Costs Type of Fixed Cost Monthly Cost Entrepreneurial Stipend $64 (8hrs * $8) Depreciation $10 Advertising $40 Cell Phone $50 Rent $50 Dress Donations $60 TOTAL Fixed Costs $274 14

15 Monthly Sales Projection Month January 7 Units Sold Units Sold February 7 March 10 April 10 May 15 June July 13 August 10 September 10 January February March April May June July August September October November December October 10 November 7 December 7 Total Per Year :121 Full Capacity: 150 Monthly Break Even Units:

16 Projected Yearly Income Statement Selling Price Per Unit $ 300 # of Units Sold 121 Total Sales $ 36,300 Total COGS $ 14, Other Variable Costs $ Total Variable Costs $ 14, Gross Profit $ 21, USAIIRD $1,848 Other Costs/Unforeseen $0 Total Fixed Costs $1,848 Profit before Taxes $ 19, Less Estimated $ 4, Net Profit $14,

17 Start Up Investment Item Where I will buy this? Cost of Item Three-Thread Serger Sewing Machines Plus $200 Cover Stitch Machine Sewing Machines Plus $200 Plus Sized Dress Form Sewing Machines Plus $120 CASH RESERVE covering 3 months of fixed costs $ 822 Estimated TOTAL START-UP INVESTMENT $

18 Return On Investment/ Return On Sales Return on Investment (ROI) Yearly Net Profit Investment X 100 Start-up 1110% Return on Sales (ROS) Yearly Net Profit Total Sales X % For every $1 dollar invested, my business will earn: $11.10 For every $1 dollar of sales, my business will earn: $

19 Financing Strategy for Total Start Up Investment Source Amount Personal Savings $800 Relatives/Friends -- Investor -- Grant [From NFTE] $542 Total: $

20 Social Responsibility Plan I hold a yearly fashion show with over 500 guests. Tickets are $5.00 and a portion of the proceeds go to various charities like The American Heart Association. This is also a great marketing technique that I use to spread awareness of Zoë Damacela Apparel. I also auction off an Innovative Garment made from recycled materials every year and 100% of the profit goes to charity. I donate about 10 garments per month to various women s shelters throughout the Chicago area. This helps women in need build a wardrobe for success. 20

21 Business & Educational Goals Business Manage business in college, have 3-4 employees. Show collections at fashion weeks worldwide, sell designer clothes at upscale stores and at the Zoë Damacela boutique. Educational Graduate from high school, attend the School of the Art Institute in Chicago or another fashion design school. Graduate from college, attain an internship with another designer and begin label. 21

22 You are beautiful. We want people of all colors, ages, and body types to feel beautiful inside and out while giving back to the community and protecting our environment. Thank you for your consideration of Zoë Damacela Apparel 22